Week Ahead: RBI Policy, Auto sales, Q2 updates, global cues among key market triggers this week

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Also Read: S&P Global downgrades Vedanta Resources to CCC, second rating cut this week after Moody's The BSE Smallcap index also rose about a per cent. The BSE Midcap index, on the other hand, jumped 3.7 per cent in September. The Nifty index gained more than 2 per cent during the July-September quarter, but closed lower for a second straight week, dropping 0.2 per cent.

"Amidst mounting concerns stemming from escalating crude oil prices and inflationary pressures, which were compounded by fears of another rate hike by the Fed, the domestic market grappled with volatility. The increase in US bond yields and volatility in the INR further diminished the attractiveness of domestic indices for foreign investors.,'' said Geojits' Vinod Nair. ‘’Yet the market concluded the week on a positive note, boosted by healthy momentum in industrial growth, up by 12 per cent year-on-year.

Volatility is expected to remain elevated in the short term, given the upside risk of domestic inflation on account of higher crude prices,'' added Nair. Going forward, a buzzing week awaits the primary market on several ongoing initial public offerings (IPOs) across mainboard and small-and-medium enterprises (SME) segments. The week will be crucial from the domestic point of view as investors have shifted their focus to the RBI MPC meeting's decision on the key interest rates.